BPI adds peso options for global equity funds

MANILA, Philippines – Ayala-led Bank of the Philippine Islands (BPI) is launching peso share classes for two global equity funds, allowing FIlipinos to invest abroad without converting peso into dollars.

BPI Wealth launched peso share classes for the BPI World Technology Feeder Fund and BPI Global Equity Fund of Funds on Thursday.

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This launch expands BPI Wealth’s lineup of peso-denominated global investment products, which Filipinos can access for as little as P1,000, and comes as the bank pushes portfolio diversification amid heightened market volatility.

“(This) is not simply about introducing new peso class products,” said BPI Wealth president and CEO Maria Theresa Marcial. “It is about opening the gateway to global opportunities and making them more accessible to every Filipino investor.”

The BPI World Technology Feeder Fund invests in a single target fund, the BlackRock World Technology Fund.

Semiconductors make up 47.9 percent of the portfolio, followed by technology hardware (21.7%), software and services (12.5 percent), and media and entertainment (8.1 percent).

By geography, the United States comprises 73.5 percent of the portfolio, followed by South Korea at 10.1 percent. Taiwan and Japan account for 8.7 percent and 3.7 percent, respectively. 

Meanwhile, the BPI Global Equity Fund of Funds provides diversified exposure across multiple underlying funds and global markets.

The United States accounts for 55.8 percent of the portfolio. Information technology accounts for 26.6 percent of holdings, followed by financials (20.1 percent), consumer firms (11.4 percent) and communication services and utilities (10.1 percent).

BPI Wealth chief investment officer Luis Antonio Zialcita said foreign exchange movements will still affect investors as underlying assets are invested overseas.

“When the dollar is strengthening against the peso, your returns are slightly higher. When the dollar weakens against the peso, your returns may be lower,” he said.

Still, Zialcita said currency exposure can help diversify portfolios. 

“When we’re exposed to the foreign exchange risk, it actually aids in the aim of diversification,” he added. “A lot of the benefits of diversification to international assets come from the currency exposure.”

BPI Wealth is targeting 20-percent growth in assets under management this year from P1.83 trillion. /pai INQ